difference between microeconomics and macroeconomics

Points of Difference

Microeconomics

Macroeconomics

1

Study matters

It studies about individual economic units like households, firms, consumers, etc.

It studies about an economy as a whole.

2

Deals with

It deals with how consumers or producers make their decisions depending on their given budget and other variables.

It deals with how different economic sectors such as households, industries, government and foreign sector make their decisions.

3

Method

It uses the method of partial equilibrium, i.e. equilibrium in one market.

It uses the method of general equilibrium, i.e. equilibrium in all markets of an economy as a whole.

4

Variables

The major microeconomic variables are price, individual consumer’s demand, wages, rent, profit, revenues, etc.

The major macroeconomic variables are aggregate price, aggregate demand, aggregate supply, inflation, unemployment, etc.

5

Theories

Various theories studied are:

1) Theory of Consumer’s Behaviour and Demand

2) Theory of Producer’s Behaviour and Supply

3) Theory of Price Determination under Different Market Conditions

Various theories studied are:

1) Theory of National Income

2) Theory of Money

3) Theory of General Price Level

4) Theory of Employment

5) Theory of International Trade

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microeconomics is that which study the individual behaviour of a consumer.

macroeconomics is that which study the economy as whole.

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MICROECONOMICS:-

It refers to that branch of economics which studies different economic problems or issues relating to an individual unit like a consumer or a producer,etc. Problem of choice or Problem of allocation of resources is the principal microeconomic issue. 

MACROECONOMICS :-

It refers to that branch of economics which studies different economic problems or economic issues relating to the whole economy or country. Level of output or level of income in the whlole economy is the principal macroeconomic issue.

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MICROECONOMICS

IT STUDIES THE ECONOMIC ISSUES OR ECONOMIC PROBLEMS AT THE LEVEL OF INDIVIDUAL--Individual firm

MACROECONOMICS

IT STUDIES THE ECONOMIC ISSUES OR ECONOMIC PROBLEMS AT THE LEVEL OF AN ECONOMY AS A WHOLE

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@diya

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macro-economics

  1. meaning derivative---it derives from greek word macros
  2. tools---aggregrate demand and aggregrate supply
  3. central problems---full employement and determination of national income
  4. alternatives names---income theory
  5. objectives---development of given resources
  6. examples---national income, price level, poverty

micro-economics

  1. meaning derivates---it derives from greek word mikros
  2. tools---demand and supply
  3. central problems---price determination and allocation of resources. it helps to solve central problems of what, how and for whom to produce
  4. alternative names---pice theory
  5. objectives---optimum allocation of resources
  6. examples---individual income, individual output
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it is given in the study material of meritnation

http://cbse.meritnation.com/study-online/study-material/z1fpxfvhs1q$dHtSlOcu$w!!/YcjBCSQRpHfM@XcRaRXFbQ!!

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